Bank of America Q4 beats expectations as expenses drop

Bank of America looked set to rally at the open after posting better-than-expected earnings for the three months to the end of December, as expenses declined.

Net income attributable to common shareholders came in at $3.01bn, or 28 cents a share, compared with $2.74bn, or 25 cents a share a year earlier. The gain came as non-interest expenses dropped 2% to $13.9bn.

Meanwhile, revenue for the fourth quarter rose to $19.53bn from $18.96bn.

Analysts had pencilled in adjusted earnings per share of 26 cents on $19.86bn in revenue.

Chief financial officer Paul Donofrio said: “Our results this quarter reflect our ongoing efforts to improve operating leverage while continuing to invest in our business.

“We increased net interest income, managed expenses tightly, and returned $1.3bn in capital to our shareholders this quarter through common stock repurchases and dividends."

Bank of America shares were up 2.4% in pre-market trading.